Oil prices increased in early Asian trade on Wednesday as a result of Middle East tensions and a lower dollar, while investors focused on inventory data after a two-week hiatus.

Brent futures were up 8 cents to $82.55 a barrel by 0013 GMT, while WTI crude in the United States was up 2 cents to $78.28.

On Wednesday, the Israeli military announced its soldiers were conducting an assault against Hamas within Gaza's largest hospital, Al Shifa.

On Tuesday, US Vice President Joe Biden stated that he is holding daily talks to obtain the release of hostages held by the Hamas militant group and believes it will happen.

On Wednesday, the US Energy Information Administration (EIA) will release its first oil inventory update in two weeks. Due to a system upgrade, the EIA did not release a storage report last week. [EIA/S]

According to a Reuters poll, oil firms added around 1.8 million barrels of crude to U.S. stocks in the week ending Nov. 10, in line with data from the American Petroleum Institute released Tuesday.

The International Energy Agency (IEA) raised its demand growth predictions on Tuesday, while its 2024 outlook remained far lower than that of producer club OPEC.

Expectations that the Federal Reserve of the United States will lower interest rates next spring pushed the US dollar to a two-and-a-half-month low against a basket of other currencies. A weakening dollar can stimulate oil demand by making petroleum more affordable to purchasers who use other currencies.

On Wednesday, third-quarter Japanese GDP and Chinese retail sales, industrial output, investment, and unemployment figures for October will be released, while US and Chinese Presidents Joe Biden and Xi Jinping will meet in San Francisco at the Asia Pacific Economic Cooperation summit.